Investing in Latvia and Eastern Europe

Most of the Eastern Europe countries are brand new countries with new, young economies. After the Soviet Union collapsed, many ex-Soviet countries gained their independence in the early 90’s, which means that they have fresh economies and fresh markets to pursue.

Latvia for Gold

Latvia, at the moment, isn’t in a very good position. Since Latvia was accepted into the EU the inflation rate has grown rapidly, and at the moment the inflation rate is 20%. The stock market is really small and already crowded with investors. Investing in real estate is also a bad idea at the moment. A few years ago there was a big explosion in the real estate market. Banks were giving out loans left and right, but now, many people can’t pay the loans, and banks do not give out those loans so easily now. This also caused a crisis in the Latvian real estate market. Experts predict that the new Latvian real estate explosion could happen in 2010, when the inflation rate is going to be lower, and the average person’s income will raise. This means that year of 2010 could be a really great year to invest in the Latvia’s real estate market.

At the moment the precious metals market is booming in Latvia, however. It’s really profitable to invest now in silver and gold. Many people have invested in silver and gold coins – which means they hold the value of the metal and the coin – and it is really profitable. But the stock market over the next few years looks like it is going to stay the same.

Ukraine and Russia for Stocks

Lately, according to stats, Ukraine has a real stock market explosion. Many people are already investing in the Ukraine’s stock market. This country is advancing quite rapidly, and investors around the world are already entering Ukraine’s stock market. While Ukraine could be too late for some people to invest, Russia is showing the same economical growth that Ukraine had two years ago, which means that in the next two years Russia’s stock market could explode as well and attract many investors.

Bulgaria and Romania for Real Estate

Bulgaria and Romania are now real goldmines for real estate. These two countries are poor, but this could be a perfect investment. Romania and Bulgaria are now in the same economical state where Latvia was 10 years ago. This means that real estate is really, really cheap in these two countries. But since Bulgaria and Romania joined EU recently, the prices will go up the same as they did in Latvia. And those who have invested or will invest in the near future, could probably have a ROI over 450%. Because the buildings and lands are dirt cheap. Two story house, fully decorated and “working” with land, at the coast of the Black Sea, which is one of the most exotic places in Europe, costs only about $50,000 (USD). So, you can just imagine the potential profit.

If you are searching for new markets, then Eastern Europe could be one of the places to start with. These countries have great potential in terms of economic growth.